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About the MIFThe Multilateral Investment Fund (MIF) of the Inter-American Development Bank (IDB) works to support economic growth and poverty reduction in Latin America and the Caribbean through the promotion of investment and private sector development. As part of its program, the MIF seeks to support entrepreneurs and small and medium enterprises by creating a favorable ecosystem for early stage financing through angel investing, seed capital, and entrepreneurship. For more information, please visit: www.fomin.org.
About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies over the world. We develop outstanding leaders who team to deliver our promises to all of our stakeholders. In doing so, we play a critical role In building a better working world for our people, for our clients and for our communities. For more information about our organization, please visit www.ey.com/mx.
This publication is the result of a study commissioned by the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB), to EY. It has been prepared by EY Mexico with the cooperation and supervision of the MIF’s Early Stage Equity Group. The following people participated in the review process from the MIF: Susana Garcia-Robles, Monica Pina Alzugaray, Rebeca Granda Marcos, Xuan-Trang Ho, Lauren Murphy, Maria Teresa Villanueva, Yuri Soares, Georg Neumann, and Elizabeth Terry.
© 2014 Inter-American Development Bank. All rights reserved; may be freely reproduced for any non-commercial purpose. The opinion expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent.
© 2014 Mancera S.C.Member of Ernst & Young GlobalAll rights reserved
Cover Image © FOMIN/USA/2013/Pablo López.This image was taken at WeXchange: The First Latin American and Caribbean Forum for Women Entrepreneurs, which took place on 11-12 December, 2013, in Miami, Florida, USA. www.wexchange.co
March 2014
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 1
TABLE OF CONTENTS
GLOSSARY .............................................................................................................................................. 2
EXECUTIVE SUMMARY .............................................................................................................................. 3
WHY SHOULD WE ANALYZE HIGH-GROWTH WOMEN ENTREPRENEURS IN LATIN AMERICA AND THE
CARIBBEAN? ........................................................................................................................................... 5
WHAT METHODOLOGY WAS USED TO DEVELOP THIS STUDY? ........................................................................... 9
WHO ARE THE REGION’S HIGH-GROWTH WOMEN ENTREPRENEURS? ..............................................................13
WHAT DEFINES THEIR ENTREPRENEURIAL ACTIVITIES? ..................................................................................17
WHAT DRIVES THEM AND WHO SUPPORTS THEM? .......................................................................................22
WHAT ARE THEIR DREAMS AND AMBITIONS? ..............................................................................................26
WHAT CHALLENGES DO THEY FACE? ..........................................................................................................28
WHAT DO HIGH-GROWTH MEN ENTREPRENEURS THINK ABOUT THEM? ...........................................................31
WHAT ADVICE WOULD YOU GIVE TO WOMEN ENTREPRENEURS WHO WANT TO GROW THEIR BUSINESSES? ............33
CONCLUSIONS AND RECOMMENDATIONS ...................................................................................................34
COMPARISONS BETWEEN GROUPS ............................................................................................................39
REFERENCES ..........................................................................................................................................47
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GLOSSARY Entrepreneurial activity: For the purpose of
this report, entrepreneurial activity describes
the reason why the entrepreneur developed
her/his venture, the ambition with which
s/he started her/his business, if s/he has ever
considered closing it, the sector or industry in
which the business operates, the scope of
products and/or services offered, its
corporate structure and the existence of a
mentor to guide the entrepreneur along
her/his journey.
Ambition: Ambition refers to the
characteristics that differentiate successful
women entrepreneurs from less successful
ones, what is needed to transform a vision
into a real business.
Profile: For the purpose of this report, an
entrepreneur’s profile (for men and women)
represents the characteristics that describe
her or him. These include age, marital status,
number of children (if any), highest degree of
studies, whether they belong to an
entrepreneurial family, and their current
socio-economic level.
Smart capital: Financial support provided by
investors, who in addition to financing a
business, help in developing the business by
sharing their knowledge, experience,
network, and management skills.
Angel investor: Private investor, individual or
entity that provides smart capital to a new
high-potential business to foster its growth.
Seed capital: Funding used for the initial
investment in a venture to develop
prototypes, market research, or initial
production; provided with a long time
horizon and for the purpose of generating
profits, analyzing the development of new
technologies, or for different personal
incentives (giving back to society, starting
another business, self-development, etc.).
Seed capital has a high-risk/high-return
profile, higher than that of venture capital.
Venture capital: Financial support provided
after seed capital for the first business
expansion to meet needs related to working
capital, inventory, etc. It is provided with a 4-
5 year time horizon in order to maximize
financial returns.
High-growth women entrepreneurs:
Women entrepreneurs whose companies are
formal and have had at least 20% annual
growth in sales and/or employment for the
past three years.
High-growth men entrepreneurs: Men
entrepreneurs whose companies are formal
and have had at least 20% annual growth in
sales and/or employment for the past three
years.
Low-growth women entrepreneurs: Women
entrepreneurs whose companies are formal
and have had between 10% and 19% annual
growth in sales and/or employment for the
past three years.
Cultural values: They refer to the beliefs,
customs and activities that members in
society have in common.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 3
EXECUTIVE SUMMARY High-growth entrepreneurship has been
demonstrated to be a catalyst for high socio-
economic impact influence. Although just 5%
to 7% of all American businesses are high-
impact, these businesses create most of the
new jobs in the United States.1 Similarly,
according to a 2012 Endeavor report,2 high-
growth entrepreneurial companies annually
generate 30 more jobs than the average
comparable company.
High-growth entrepreneurs create jobs,
inspire existing and would-be entrepreneurs
to invest in their communities, and contribute
to their entrepreneurial ecosystems to
generate new businesses. Though each
entrepreneur and each company are
different, all share one thing in common:
their exceptional leadership, which allows
them to realize their vision and transmit their
passion to their teams, investors, and
communities.3
In the Latin American and Caribbean region,
little is known about high-growth
entrepreneurs and even less is known about
women whose companies achieve high
growth: Who are they? How did they
succeed in reaching this level of growth?
What motivates them? What are their biggest
challenges and ambitions? What do they
need to keep their businesses growing? This
1 The Vital Entrepreneur: High Impact at Its Best. (2013). EY,
Kauffman Foundation. 2 How High Is High Impact? (2012). Endeavor Global. 3 The Vital Entrepreneur: High Impact at Its Best. (2013). EY,
Kauffman Foundation.
report aims to collect information to get to
know them better and to explore common
aspects of women whose businesses have
experienced high levels of growth (referred
to as high-growth women entrepreneurs
onwards in this report).
Specifically, the objectives of this study are
to:
Identify them: Their profiles, needs,
challenges, and key factors that
contribute to the success of high-growth
women entrepreneurs in the region.
Analyze them: Compare and analyze
high-growth women entrepreneurs in the
region with their male counterparts and
with women entrepreneurs whose
companies have lower rates of growth.4
Encourage their participation: Propose
areas of intervention to promote high-
growth entrepreneurship among women
in the region.
The findings presented below are the result
of a study of entrepreneurs in nine regional
countries (Argentina, Brazil, Chile, Colombia,
Costa Rica, Jamaica, Mexico, Peru, and
Uruguay). In general, high-growth women
entrepreneurs in Latin America and the
Caribbean:
Are opportunity-driven and not necessity-
driven.
4 Entrepreneurs whose companies are formal and have had
between 10% and 19% annual growth in sales or employment for the past three years.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 4
Are between 30 and 39 years old, live
with a partner, and have on average two
children.
Come from families with an
entrepreneurial background.
Currently belong to a high or medium-
high socio-economic level.
Have a college degree (bachelor’s degree
or equivalent).
Rely on their “business sense” and on
their technical expertise to start a
business.
Generally start their businesses in
traditional or mature sectors.
Started with the idea of growing their
businesses into medium or large
enterprises within their own countries.
Are majority owners of their businesses
and/or raised funding from their relatives
or friends.
Rely on their inner circles (partners,
family, and friends) to reconcile the
multiple roles that society expects from
them.
Want to continue growing their
businesses and would be willing to do
anything to bring their businesses to the
next level.
Have to deal with certain challenges in
order to grow their businesses, such as
lack of funding, fear of failure, and
conflicts between the multiple roles that
they play.
Seizing and capitalizing on the ambitions of
women entrepreneurs must be a priority for
the public and private sectors due to the
impact they generate in their economies and
communities. In addition, the entrepreneurial
ecosystem must be strengthened by
promoting better networks, exploring a
greater diversity of funding sources, and
promoting government policies that support
women entrepreneurs with balancing their
work and personal lives.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 5
WHY SHOULD WE ANALYZE HIGH-GROWTH
WOMEN ENTREPRENEURS IN LATIN AMERICA
AND THE CARIBBEAN?
Because they could have the same impact as high-growth women entrepreneurs do in other developed economies.
Because there is a common belief that they face much more complex challenges than women in more developed economies.
Because there is no reliable historical information related to their profiles and their businesses.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 6
In Latin America and the Caribbean, women
represent 41.6%5 of the economically active
population. The average rate of
entrepreneurial activity of women in the
region is 15%,6 with 71% starting their
businesses based on opportunity and 29% of
necessity.7
Opportunity-driven women entrepreneurs
are usually long‐term entrepreneurs and have
a greater impact on the economy than low-
growth entrepreneurs, mainly by creating
wealth and jobs, and by boosting innovation
when compared to low-growth women
entrepreneurs.
“In Latin America and the Caribbean, women
face much more complex challenges in the
formal economy than women in more
developed countries, such as: a lack of
policies and programs to support and
encourage entrepreneurial activity, excessive
norms and regulations, and restricted access
to credit.”8 Likewise, there are differences in
the entrepreneurship environment for
women across different countries in the
region.9
Women entrepreneurs face different
challenges in building high-growth ventures;
they not only have to deal with challenges to
start their companies, but also have to face
5 “Female labor force in Latin America and the Caribbean.”
(2012). World Bank Database. The labor force is defined as
the economically active population, all the people who bring
their work to produce goods and services during a given
period. 6 Global Entrepreneurship Monitor. (2013). 2012 Global Report. 7 Entrepreneurs motivated by need are those that venture
because they are unemployed and need a source of income.
Entrepreneurs motivated by opportunities are those who
venture to exploit a market opportunity, increase their
income, or seek economic independence. 8 Global Entrepreneurship Monitor. (2013). 2012 Global Report. 9 Women´s Entrepreneurial Venture Scope. (2013). EIU.
specific gender barriers in subsequent
phases when developing their businesses.10
Despite the efforts of the public and private
sectors to improve the entrepreneurial
environment, there is still a significant
gender gap in entrepreneurship (primarily in
terms of quantity and growth), which puts
the female population at a disadvantage.11
This is not only the result of a complex
entrepreneurial environment commonly
faced by women in the region, but also the
result of their own attitudes and motivations.
The most significant challenges that women
entrepreneurs face in growing their
businesses include: (i) their companies
typically begin with less capital than their
male counterparts, which translates into low
performance in terms of assets, revenues,
profitability and survival;12 (ii) women seem
to be hesitant to borrow money, as they
usually believe that their requests will be
rejected and that the amount of loans
available to them will not be sufficient to help
them grow their businesses;13 (iii) women
have greater difficulty developing networks
of contacts for their businesses;14 (iv) women
are affected to a greater extent by the
demands of work and personal life;15 (v)
women show greater fear of failure and less
10 The Vital Entrepreneur: High Impact at Its Best. (2013). EY,
Kauffman Foundation. 11 Global Entrepreneurship Monitor. (2013). 2012 Global
Report. 12 Scaling Up: Why Women-Owned Businesses Can Recharge the
Global Economy. (2009). EY. 13 Ibid. 14 Ibid. This refers to the relationships that help professionals
show their abilities and meet prospects that, ultimately, will purchase services from them and/or will recommend them to potential buyers.
15 Ibid.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 7
confidence in themselves;16 (vi) women are
more likely to operate their projects without
employees; (vii) women are customer-centric
and rarely sell outside of their countries;17
and (viii) women often do not avail
themselves of specialized assistance to grow
their enterprises.18
In order for women to be able to achieve
high-growth entrepreneurship, they need
tools and programs tailored to their needs
and to the roles that they normally play in
family life. In addition, they need to have
follow up and support during subsequent
phases to sustain growth of their
businesses.19
In Latin America and the Caribbean, women's
self-confidence is lower than that of men:
56% of women considered themselves
capable of starting their own businesses
(compared to 68% of men who do).20 At the
same time, in the region, women are more
dependent on their husbands, partners and
relatives to start and grow their businesses.21
Although there are many factors that, to a
large extent, determine the decision to start a
business; such as age, employment status,
education, income level, contact networks
16 Scaling Up: Why Women-Owned Businesses Can Recharge
the Global Economy. (2009). EY. 17 Global Entrepreneurship Monitor. (2013). 2012 Women’s
Report. 18 Scaling Up: Why Women-Owned Businesses Can Recharge
the Global Economy. (2009). EY. 19 “Le développement de l’entrepreneuriat feminine.” (2013).
ILO. As example of the support programs tailored to the needs of women is the one carried out jointly by the International Labor Organization (ILO) and the WED (Women Entrepreneurship Development), in five countries in Africa and Asia. Its objective is to increase women-owned companies’ income by 50% and increase sales four times.
20 Scaling Up: Why Women-Owned Businesses Can Recharge the Global Economy. (2009). EY.
21 Global Entrepreneurship Monitor. (2013). 2012 The Women’s Report.
and perceptions of the environment,22 the
main differentiator for both men and women
high-growth entrepreneurs is their ability to
develop companies and businesses with great
impact in terms of long-term value creation
(including wealth and jobs), and to become
role models in the world of entrepreneurship.
Through their leadership, motivation and
knowledge, both high-growth men and
women entrepreneurs succeed, even in
adverse economic times.
Many high-growth women entrepreneurs
have overcome or simply ignored traditional
barriers and have made progress toward
strong, sustained growth with their
endeavors.
Detailed historical information about high-
growth women entrepreneurs in the Latin
American and Caribbean region does not yet
exist, affecting the visibility of the women’s
overall entrepreneurial activity in the region.
In addition, since it is a recent topic, the
number of success stories is not very high in
comparison to the many examples of
successful high-growth men entrepreneurs.
There are different initiatives driven by
women's organizations and networks that
can contribute to the empowerment and
autonomy of women, but these have not
been registered in statistical records and
have not been successfully systematized in
order to assess their impacts.23
According to estimates from the Global
Entrepreneurship Monitor (GEM), in Latin
America and the Caribbean, the number of
new companies established in 2012 was 7%
22 Global Entrepreneurship Monitor (2011). 2010 The Women’s
Report. 23 Women entrepreneurs in Latin America and the Caribbean:
Realities, Challenges and Obstacles. (2010). ECLAC.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 8
higher than the previous year,24 which leaves
a gap for entrepreneurial activities to
continue developing. However, what is not so
obvious is the need to promote
entrepreneurship through increased
education, opportunity and support to
potential entrepreneurs.
In recent years, there has been a positive
change in the entrepreneurial ecosystem in
the region, evidenced by a greater number of
agencies, support networks and funding
sources that focus on providing specific
services to all entrepreneurs. According to a
study by EY titled, “Women: The Next
Emerging Market,” by eliminating the barriers
related to gender issues that currently
impede the progress of entrepreneurs,
companies would benefit from underutilized
talent. Women entrepreneurs not only have
creative ideas and ambitions, but also have
the capacity to bring new concepts and
products to the market.
24 Global Entrepreneurship Monitor. (2014). 2013 Global
Report.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 9
WHAT METHODOLOGY WAS USED TO DEVELOP
THIS STUDY?
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 10
This study is based on quantitative and
qualitative data collected by online surveys,
face-to-face interviews, and focus groups
conducted across nine countries in Latin
America and the Caribbean (Argentina, Brazil,
Chile, Colombia, Costa Rica, Jamaica, Mexico,
Peru, and Uruguay). Information on the
perception of high-growth women
entrepreneurs was collected from different
players in the entrepreneurial ecosystem
(incubators, accelerators, associations of
entrepreneurs, and academic professionals).
Additionally, surveys were conducted with
427 entrepreneurs (306 women and 121
men) and 16 women executives. Eight focus
groups were conducted with different players
from the entrepreneurial ecosystem in all
countries analyzed except Uruguay. These
groups were comprised of high-growth and
low-growth entrepreneurs of both sexes; and
in some cases women executives and
relevant players in the entrepreneurial
ecosystem from the public and private
sectors.
The sample was divided into three groups:
High-growth women entrepreneurs: Women
entrepreneurs whose companies are formal
and have had at least 20% annual growth in
sales or employment for the past three years.
High-growth men entrepreneurs: Men
entrepreneurs whose companies are formal
and have had at least 20% annual growth in
sales or employment for the past three years.
Low-growth women entrepreneurs: Women
entrepreneurs whose companies are formal
and have had between 10% and 19% annual
growth in sales or employment for the past
three years.
The statistics illustrated in all charts and
tables in this study derive from the surveys
and interviews conducted by the EY team,
unless otherwise noted.
54%
29%
17%
Entrepreneurs surveyed, by age
(% of total responses)
What is your age?
Entrepreneurs interviewed, by sex
(% of total responses)
High-growth women
entrepreneurs
20 – 29 10%
30 – 39 35%
40 – 49 30%
50 – 59 18%
60 + 7%
High-growth men
entrepreneurs
Low-growth women
entrepreneurs
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 11
Entrepreneurs surveyed, by industry
(% of total responses)
To which sector or industry does your business belong?
* Other includes sectors such as biotechnology, real estate, transportation, recycling, education materials, energy, and
public services.
TOPICS DISCUSSED DURING THE INTERVIEWS
Interviews with entrepreneurs:
Demographics: Age, marital status,
highest degree of studies, membership in
an entrepreneurial family, and corporate
background.
Year in which their business was
established.
Business description: Income/employees
—initially and currently, funding at the
beginning of their project, support
received, and opportunity cost of being
an entrepreneur.
When starting the business: Major
motivators and challenges.
Currently: Vision, objectives and
challenges.
Entrepreneurial Ecosystem: Rating the
entrepreneurial ecosystem in their
country, participation of the government
and the private sector, role of incubators
and accelerators, regulations that
2% 2% 2% 2%
2% 3%
3%
3%
4%
5%
5%
5%
6%
6% 6%
11%
12%
21%
Hospitality Construction Financial services Other services
Computing Agriculture Entertainment Industrial
Consumer goods Software Communications Health
Retail Internet Manufacturing Business services
Food and Beverage Other *
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 12
promote an entrepreneurial environment
(social security, taxes, procedures,
permits, licenses and patents), chambers
of commerce and agencies, universities
that promote entrepreneurship, capital
market development.
Advice for any player of the entre-
preneurial ecosystem.
Differences between men and women
entrepreneurs.
Definition of ambition and success for
men and women entrepreneurs.
Role of women in their country.
Characteristics of a successful entre-
preneur.
Interview with key players in the entrepre-
neurial ecosystem:
Rating of the entrepreneurial ecosystem.
Key players: Involvement of the
government, private sector, the role of
incubators and accelerators, regulations
that promote an entrepreneurial
environment (social security, taxes,
procedures, permits, licenses and
patents), chambers of commerce and
agencies, universities that promote
entrepreneurship.
Capital market development.
Promotion of and information on
entrepreneurial companies.
What should be done in order to increase
the prevalence of high-growth women
entrepreneurs?
What should be done to increase the
success of entrepreneurs?
What are the main motivators of an
entrepreneur when starting a project?
What are the main challenges that an
entrepreneur must face in order to grow?
What are the differences between men
and women entrepreneurs regarding
opportunities, leadership and
management?
What is the role that women play in each
of the countries?
Advice for any entity of the
entrepreneurial ecosystem, with the
purpose of accelerating the growth of
entrepreneurs.
The study was divided into the following phases:
Part I
Survey and profiling of high-growth women entrepreneurs and
comparative analysis relative to men
entrepreneurs and women whose business
has achieved lower levels of growth.
Part II
Interviews and showcasing of high-
growth women entrepreneurs. Focus
groups with high-growth women and men
entrepreneurs and players of the entrepreneurial
ecosystem.
Part III
Main challenges and suggested areas for
intervention/ways to encourage more women to pursue high-growth
entrepreneurship and for existing women
entrepreneurs to think more boldly about their
growth objectives.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 13
WHO ARE THE REGION’S HIGH-GROWTH WOMEN
ENTREPRENEURS?
Women between 30 and 39 years of age who live with their partners and have on average two children.
They come from families with a history of entrepreneurship.
They belong to high or medium-high socio-economic levels and hold a bachelor’s or master´s degree.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 14
1. GROWING UP IN AN ENTREPRENEURIAL FAMILY
INSPIRES AND SHAPES THE ENTREPRENEURIAL SPIRIT
Growing up in an entrepreneurial family is a
factor that shapes the spirit and the desire to
start up a business. Living in an environment
where one observes activities first hand and
listens to entrepreneurial parents’
conversations plants a seed that could
eventually lead to establishing a venture. This
is known as the “Kitchen Table Effect,” where
children from entrepreneurial families live
and learn from the family’s experiences and
consequences of starting a business. Three
out of four high-growth entrepreneurs in our
surveys, both men and women, come from
entrepreneurial families.
Both women and men who come from
entrepreneurial families have often been
inspired to start their own businesses.
However, when they leave their families and
are exposed to other people, men
entrepreneurs tend to look for mentors
outside their families to help them start and
grow their businesses, whereas women
entrepreneurs tend to look for mentoring
within their own families. In many cases,
their mentors do not have up-to-date
business experience or the knowledge
needed to maximize the business’s potential.
2. HIGHER EDUCATION IS KEY, AND INTERNATIONAL
EXPERIENCE MAKES A DIFFERENCE
Being exposed to an academic environment
and international experiences can make a
difference in how fast a business can grow;
these experiences improve an entrepreneur’s
ability to network and also positively shape
his or her ambition to grow.
Data show that men entrepreneurs have not
only achieved higher educational levels, but
also have had the opportunity to study
abroad in higher percentages.
Level of education
(% of total responses)
What is your highest level of education?
Although the majority of men and women
entrepreneurs hold a bachelor’s degree,
there is a significant difference in the level of
studies completed by each group. Half of the
high-growth men entrepreneurs surveyed
have a graduate degree (Master’s or PhD),
compared with only 22% of high-growth
women entrepreneurs and 24% of low-
growth women entrepreneurs.
Approximately a third of women
entrepreneurs (high and low-growth) have
had the opportunity to study abroad,
compared to 60% of men who have
experienced education outside their country.
24%
54%
22%
10%
40%
50%
15%
61%
24%
0%
10%
20%
30%
40%
50%
60%
70%
Elementary,middle or high
school
Bachelor orequivalent
Master´s orPhD
High-growth women entrepreneurs
High-growth men entrepreneurs
Low-growth women entrepreneurs
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 15
International educational experience
(% of total responses)
Have you had the opportunity to study abroad?
Exposure to international experiences
benefits and shapes an entrepreneur’s
profile, as s/he benefits from a broader
business perspective, learns new ways to face
challenges, gains cultural awareness and
improves the ability to identify new business
opportunities. Thus, encouraging women to
get international experiences is key to their
success.
3. AGE AND MARITAL STATUS DO NOT MAKE A
DIFFERENCE, BUT WOMEN TEND TO LAUNCH
VENTURES LATER IN THEIR CAREERS
Most high-growth women entrepreneurs are
young adults (70% are between 20 and 49
years old), are highly educated (at least 76%
hold a bachelor’s degree), and have the
support of their families and spouses (63%
are either married or live with their partner)
in the different stages of their venture.
As with the majority of high-growth women
entrepreneurs, most high-growth men
entrepreneurs (82%) are younger than 50
years old. However, data suggests that men
tend to launch their ventures at a younger
age, as 18% of them are between 20 and 29
years old, compared to only 7% of women
entrepreneurs (both high and low-growth).
Regardless of their sex, most entrepreneurs
are either married or live with a partner.
35%
60%
32%
65%
40%
68%
0%
20%
40%
60%
80%
100%
High-growthwomen
entrepreneurs
High-growthmen
entrepreneurs
Low-growthwomen
entrepreneurs
No
Yes
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 16
0%
20%
40%
60%
80%
Married orliving with
partner
Single Divorced Widowed
High-growth women entrepreneurs
High-growth men entrepreneurs
Low-growth women entrepreneurs
WHERE DO THE DIFFERENCES LIE?
High-growth women
entrepreneurs
High-growth men
entrepreneurs
Low-growth women
entrepreneurs
Have studied abroad
35%
60%
32%
Are between 20 and
29 years old 7% 18% 7%
Have parents with a
bachelor’s degree 48%
70%
51%
Prevailing MIH25
High and medium-
high 72%
High and medium-
high 96%
High and medium-
high 73%
Note: Fields shaded in yellow denote significant differences with the other groups studied.
25
MIH: the monthly income level per household is derived from the income ranges as they are defined by each country’s national statistics office.
Age (% of total responses)
What is your age range?
Marital status (% of total responses)
What is your marital status?
0%
10%
20%
30%
40%
50%
20-29 30-39 40-49 50-59 60-+
High-growth women entrepreneurs
High-growth men entrepreneurs
Low-growth women entrepreuneurs
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 17
WHAT DEFINES THEIR ENTREPRENEURIAL
ACTIVITIES?
They trust their “business sense” and their technical knowledge to start their businesses. They do so in traditional or mature sectors and their initial goal is to have a medium or large domestic company.
They are majority owners of their businesses and primarily partner and source funding from family and friends.
Their current business is their first business and they have not thought of closing or selling it when faced with economic problems or conflict managing their time.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 18
1. THEY LOOK FOR OPPORTUNITIES IN FAMILIAR
SECTORS
Most high-growth women entrepreneurs, like
their male counterparts, ventured driven by
opportunity, as they either identified or
created a need for their products in the
market. This opportunity is further reinforced
by the fact that the majority of entrepreneurs
have the technical knowledge required in
their sector.
Reasons to start their businesses
(% of responses)
Why did you choose this kind of business?
* Others include reasons to venture, such as exploring a
new sector, had contacts from the sector that inspired
or supported me, or the company was passed on to
me.
2. THEIR AMBITION CHANGES OVER TIME
Unlike men entrepreneurs, high and low-
growth women entrepreneurs began their
projects with the ambition to grow them only
to the national level; that is, they did not
have the aspiration to create businesses with
regional or international reach.
However, over time, and as their businesses
expand, the national market begins to look
small to them. It is at this point where
thinking bold and outside their countries
becomes their next challenge, therefore,
their ambition changes.
Initial objective when starting their
businesses
(% of responses)
What would be your ultimate objective in
starting your own business?
44% 40% 46%
45% 51% 41%
11% 9% 13%
0%
20%
40%
60%
80%
100%
High-growthwomen
entrepreneurs
High-growthmen
entrepreneurs
Low-growthwomen
entrepreneurs
Others*
Market opportunity
I had the technical knowledge and skills26%
61%
30%
30%
17%
25%
44%
22%
45%
0%
20%
40%
60%
80%
100%
High-growthwomen
entrepreneurs
High-growthmen
entrepreneurs
Low-growthwomen
entrepreneurs
Medium to large-size player in my home market
Self-sufficient company with local scope
Quickly scale-up and reach international scope
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 19
3. THEY VENTURE ALONE OR PARTNER WITH
RELATIVES
Most women entrepreneurs own or are
majority shareholders of their businesses.
However, those who decide to partner prefer
to choose family and friends. About 50% of
female entrepreneurs (high and low-growth)
have partnered with family or their significant
others, while 60% of men have partnered
with friends, colleagues or other
entrepreneurs. Only 18% of high-growth men
entrepreneurs have a partnership with their
wives (4%) or a family member (14%).
Partners
(% of responses)
With whom did you partner when you started
your business?
*Others include friends from school, other
entrepreneurs, specialists in other areas of the value
chain of their companies, and other people from their
networks.
4. THEY SEEK MENTORSHIP
The data suggest significant differences
regarding the use of mentoring or coaching.
While 64% of men have mentors who help
them focus on business issues, 56% of high-
growth women entrepreneurs and 50% of
low-growth entrepreneurs access this type of
support. Despite the fact that at least half of
the entrepreneurs in all three groups have
some kind of guidance, it is evident that for
both sexes, male mentors are more
prevalent. Only 1% of men and 6% of high-
growth women have only women mentors,
while 9% of high-growth women and 36% of
men have only male mentors.
Both male and female entrepreneurs would
benefit from having greater diversity in their
teams of mentors and advisors.
Entrepreneurs with a mentor
(% of responses)
Do you have a business mentor?
21% 9%
18%
32%
73%
26%
23%
4%
28%
24% 14%
28%
0%
20%
40%
60%
80%
100%
High-growthwomen
entrepreneurs
High-growthmen
entrepreneurs
Low-growthwomen
entrepreneurs
FamilySpouse/partnerFriends/colleagues/others*None
44% 36%
50%
6%
1%
4% 9% 36% 12%
41% 27%
34%
0%
20%
40%
60%
80%
100%
High-growthwomen
entrepreneurs
High-growthmen
entrepreneurs
Low-growthwomen
entrepreneurs
Yes, I have female and male mentorsYes, I only have male mentorsYes, I only have female mentorsNo
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 20
5. THEY START THEIR BUSINESSES IN SECTORS
TRADITIONALLY TIED TO WOMEN
Another important contrast between the
sexes results from comparing sectors where
they have their businesses. Women
entrepreneurs, both high and low-growth,
are disproportionately found in more
traditional sectors or sectors associated with
their sex. That is, women entrepreneurs are
more concentrated in sectors such as food
and beverages, services, manufacturing and
retail, while men tend to focus on less
traditional sectors which require more
innovation, such as Internet or software
development.
6. THEY HAVE LESS INTERNATIONAL REACH
Companies of high-growth men entre-
preneurs have better international exposure
than those of women entrepreneurs, as more
men have been able to place their products
and services in regional or international
markets. This difference could be explained
not only by the ambitions women
entrepreneurs had when they started their
business, since 76% were not expecting to
expand internationally, but also by their more
cautious attitudes. They tend to partner with
people from their inner circles; therefore,
their partners and mentors, like them, often
do not have a professional or international
background.
7. THEY TAKE LESS RISK THAN MEN
Women and men have different entre-
preneurial profiles since each group faces
challenges and makes decisions differently.
As shown by the data, high-growth men
generally are more risk seeking than women,
as they tend to venture into more innovative
sectors and to partner with people outside
their families, such as colleagues and other
entrepreneurs. Also, 67% of these men have
launched ventures more than once, as
compared to 38% of high-growth women and
25% of low-growth women entrepreneurs
who have owned more than one company.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 21
WHERE DO THE DIFFERENCES LIE?
High-growth women
entrepreneurs
High-growth men entrepreneurs
Low-growth women entrepreneurs
Main sectors where they started their
business
Food and beverages Business services Manufacturing
Software Internet Business services
Food and beverages
Business services Retail
International reach
40%
71%
27%
Main ambition when starting their
businesses
Medium or large domestic company
Multi-million dollar company with
international reach
Medium or large domestic company
Is the principal owner
73%
35%
68%
Principal partner (or co-owner)
Family Spouse or partner
Friends/family Colleagues
Family Spouse or partner
Note: Fields shaded in yellow denote significant differences with the other groups studied.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 22
WHAT DRIVES THEM AND WHO SUPPORTS
THEM?
High-growth women entrepreneurs are driven by opportunity to start their businesses.
In starting and moving forward with their businesses, they rely on their inner circles (spouses, family and friends).
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 23
1. THEY RELY ON THEIR INNER CIRCLES TO LAUNCH
AND GROW THEIR VENTURES
For women entrepreneurs, support from
their inner circles is critical when starting
their own businesses. Surveyed women
stated that their spouses, family, and friends
were their main supporters when they
started their companies and continue to be
so when they decide to grow them. Women
entrepreneurs are characterized by relying on
their spouses and families to support them
throughout their entrepreneurial ventures
and in their personal lives.
For men entrepreneurs, support from their
family, friends and spouses was also critical at
the time of starting their businesses,
although as time passes by and as their
businesses expand, they rely on support from
other sources. In taking their businesses to
the next level, men tend to rely more on their
mentors, private investors, and
entrepreneurial networks, which are only the
second choice for women entrepreneurs.
Support to grow their businesses
(% of total responses)*
Given the following options, choose the three main sources of support you count on now to grow your
business
* Other sources of support with low response rates are not included in the chart. These include sources such as
government, incubators, networks, other entrepreneurs, private sector advisors, angel investors, seed capital and
venture capital funds.
19% 14%
12%
15% 13%
8%
10%
7%
10%
7% 9%
9% 8%
8%
9%
0% 10% 20% 30% 40% 50% 60%
Friends
Friends
Friends
Private banks
Spouse/partner
Family
Family
Family
Spouse/ partner
Entrepreneurial associations
Private investment Mentors
Mentors
Entrepreneurial associations
Private banks
High-growth men entrepreneurs
Low-growth women entrepreneurs
High-growth women entrepreneurs
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 24
2. THEIR MAIN SOURCE OF FINANCING IS THEIR
INNER CIRCLES
The main source of financing for women
entrepreneurs is their inner circles, both
when they start up their businesses and
when they expand them.
In line with the main sources of financial
support for women entrepreneurs, when
starting their businesses many of them use
their savings or build their capital with the
help of their families or friends. In general,
this is due to the lack of financing options
available to entrepreneurs, both men and
women, when they begin their businesses.
Banks are designed to lend based on
collateral rather than on the potential of a
project, and other sources, such as angel
investors, seed capital or venture capital, are
still not that common in some countries in
the region.
Successful women entrepreneurs who raised
capital from investors, such as angel
investors, seed capital, or venture capital
funds, did so with the intention of obtaining
something more than just capital: smart
capital.
The data indicate that 70% of high-growth
women entrepreneurs obtain funds from
their families, friends or from their own
savings, which is lower than the rate of low-
growth women entrepreneurs and higher
than the 62% of high-growth men
entrepreneurs who do it. The rest of them
capitalize through loans or funds provided by
the private and/or public sector.
The second most common source of financing
for women entrepreneurs is bank loans.
Initially, to venture, 15% of high-growth
women and 6% of high-growth men obtain
financing through banks. Later in the
development cycle, around 28% of high-
growth women and 17% of high-growth men
use bank loans to finance their growth.
This difference could be explained by the
support they find in other sources, such as
angel investors, seed capital, venture capital,
or private investors. This is due to the fact
that men entrepreneurs tend to move
further away from their inner circles seeking
to diversify their sources of support and
financing. So one can conclude that men are
willing to take more risks and try to surround
themselves with people who have the
knowledge to add value to their businesses.
Sources of financing used for venture
(% of responses)
Which was the main source of financing you used
to start your venture?
*Others include financing sources, such as the
government, incubators, accelerators, and private
investors.
54% 50%
64%
16% 12%
20% 15%
6%
11% 4%
8%
3% 11% 24%
2%
0%
20%
40%
60%
80%
100%
High-growthwomen
entrepreneurs
High-growthmen
entrepreneurs
Low-growthwomen
entrepreneurs
Others * Partners
Private banks Family/friends
Savings
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 25
3. THEY ARE MOTIVATED BY A PASSION FOR
OWNING THEIR OWN BUSINESSES
High-growth women entrepreneurs were
driven by a market opportunity to start their
businesses, a factor that influences their
motivation and ambition to manage their
organizations and plan how far they want to
get. Just like high-growth men entrepreneurs,
these women entrepreneurs placed their
stakes on an idea that sought to satisfy a
need in the market, which they identified or
created by introducing their products or
services. An 88% of these women are
motivated to do what it takes for their
companies to continue growing.
High-growth women entrepreneurs have
shown strong passion for their ideas and
businesses from the onset. This urge to have
their own businesses was the main driver
behind in their becoming entrepreneurs, and
continues to be one of their main reasons to
grow their businesses. Likewise, they rely on
their desires to be economically independent
and see their businesses as personal
challenges, which motivate them in their
expansion and development plans. In
addition, 15% of women entrepreneurs
believe that doing something worthwhile,
such as providing employment, is a motivator
to keep them focused on growing their
businesses.
Similarly to high-growth women, the other
two groups of entrepreneurs are mainly
motivated by a passion for owning their
businesses and the financial independence
they achieve.
Motivations of high-growth women
entrepreneurs
(% of responses)*
Choose your motivations for starting up your
business
When they started their businesses
Choose your motivations for growing your
business
As their businesses grow
*Other motivations with low response rates are not
included in the chart. These include motivators such as
make more money, be an example for children or
other women, flexibility and left my family be
protected.
10%
14%
18%
18%
To employ others/dosomething worthwhile
Personal challenge
Financial independence
Passion for ownbusiness
12%
14%
15%
16%
Personal challenge
To employ others/dosomething worthwhile
Passion for ownbusiness
Financial independence
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 26
WHAT ARE THEIR DREAMS AND AMBITIONS?
Six out of ten high-growth women entrepreneurs say that they have exceeded their initial goals.
Only two out of ten feel completely satisfied with their achievements.
Almost 90% replied that they want to continue growing their businesses, and 88% are willing to do whatever it takes to take their businesses to the next level.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 27
1. AMBITION FOR GROWTH … BALANCING THEIR
PERSONAL AND PROFESSIONAL LIVES
High-growth women entrepreneurs have the
motivation and determination to achieve
their objectives of improving and developing
their businesses. Ambition is the engine that
motivates them to abandon conformity.
Despite the fact that 65% of them state that
they have exceeded their initial objective,
88% of women entrepreneurs assert that
they are willing to do what it takes to bring
their businesses to the next level. This is due
primarily to the fact that many of these
entrepreneurs do not feel that they have
achieved enough, and that there is room to
grow their businesses and set new goals.
It is worth noting that there are no significant
differences in satisfaction levels between
men and women when they reach the same
growth level. However, when analyzing their
original ambitions, men had greater original
aspirations than women. While 61% of men
sought to turn their enterprises into
companies with international scope, only 26%
of women wanted to achieve this goal. At the
initial stages of their ventures, women
entrepreneurs tend to show less ambition
than men entrepreneurs. However, as their
businesses grow and consolidate, these
women entrepreneurs become as ambitious
as men entrepreneurs, creating plans to
move their businesses forward and to expand
them to new markets.
Women entrepreneurs understand the
implications of having to carry out other tasks
at home and take care of their children, in
addition to seeing their businesses grow.
Even though they are willing to do what is
takes to grow their businesses, they seek to
maintain a work life balance.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 28
WHAT CHALLENGES DO THEY FACE?
The two biggest challenges high-growth women entrepreneurs face when starting their businesses are the lack of financing and the fear of failure.
As their businesses grow, they face conflicts regarding the multiple roles they play.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 29
1. LACK OF FUNDING IS THE MAIN CHALLENGE IN
STARTING A BUSINESS
For both men and women entrepreneurs lack
of financing is the main challenge they have
to face. When they are starting their
businesses, they usually obtain their funding
primarily from their personal savings and
from funds provided by their family and
friends. In this first phase, they perceive that
access to other institutional financing sources
is complicated or does not exist. In the
expansion phase, this lack of funding is no
longer a major barrier for men
entrepreneurs, but it continues to be a
barrier for women entrepreneurs. This could
be explained by the fact that it is easier for
men (thanks to their networks) to access
other funding sources, such as angel
investors, seed or venture capital funds.
2. IN TIME THEY GAIN CONFIDENCE, BUT ALSO
START TO WORRY ABOUT THE BALANCE OF THEIR
PROFESSIONAL AND PERSONAL LIVES
For both high and low-growth women
entrepreneurs, the fear of failure is the main
personal challenge they have to deal with
when they decide to start their businesses. As
their businesses grow, they start gaining
more confidence in themselves and in their
ability to manage their businesses
successfully. However, in the growth stage,
maintaining a balance between their family
and professional lives becomes their main
personal challenge. During the interviews
conducted with high-growth-women
entrepreneurs in the region, most of them
thought that starting their own businesses
would give them greater flexibility, especially
in balancing their professional and personal
lives. In order to reach this balance, they rely
on the support provided by their families or
friends. Although playing both roles at the
same time is not an easy task, women in this
situation believe they are a source of
inspiration for their children, and a role
model for other women.
3. DISCRIMINATION IS LEFT BEHIND WHEN THEY
MOVE FORWARD
Our study showed that 88% of high-growth
women entrepreneurs do not feel
discriminated against because of their sex,
which reveals the progress and positioning of
this group. However, many of them said that
at the beginning of their businesses they had
more difficulties than men in opening doors
and making their business grow. Men
entrepreneurs recognize there is still a
problem in the entrepreneurial environment
regarding discrimination against women, and
they believe this represents the main factor
that limits women’s development and
performance as entrepreneurs.
4. BEING CONNECTED IS A NECESSITY AND AN
ADVANTAGE
Women master the technical knowledge and
management skills they need to compete in
the sectors where their businesses operate.
They have acquired knowledge since they
started up their businesses and have
developed their skills as a result of
experience. However, they are challenged
when they have to connect with the outside,
as their lack of commercial or negotiation
skills and limited or ineffective contact
networks hinder their potential to grow their
businesses.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 30
5. ONE THIRD OF ENTREPRENEURS DO NOT FACE
CULTURAL CHALLENGES
Around 30% of women and men
entrepreneurs believe that they are not faced
with any socio-cultural barriers that prevent
them from making their companies grow.
However, within the group of entrepreneurs
who say they are dealing with challenges
linked to society and culture, the majority
mentioned that their biggest challenge is the
poor perception of entrepreneurship in
society and the media.
6. THEY DEAL WITH CHALLENGES RELATED TO THE
ECONOMIC REALITY IN THEIR COUNTRIES
In general, the challenges related to the
market and business environment that
entrepreneurs of the three groups are
dealing with are linked to the economic
situation of each country.
Economic weakness, uncompetitive
regulatory environment, insecurity, and the
lack of government support are major
obstacles that entrepreneurs have to face in
order to develop their businesses.
High-growth women
entrepreneurs
High-growth
men entrepreneurs
Low-growth
women entrepreneurs
Main personal challenge faced
When they start their businesses
Fear of failure Maintaining
work/life balance Fear of failure
In growing their businesses Maintaining
work/life balance
Do not face any challenge
Maintaining
work/life balance
Main social challenge faced
When they start their business
Do not face any
challenge
Do not face any challenge
Do not face any
challenge
In growing their businesses Do not face any
challenge
Do not face any challenge
Do not face any
challenge
Main business challenge faced
When they start their business
Lack of access to
funding
Lack of access to funding
Lack of access to funding/strong competition*
In growing their businesses Lack of access to
funding
Quality of the labor force
Lack of access to
funding
*Strong competition refers to a great number of businesses offering the same product as the entrepreneurs do.
WHERE DO THE DIFFERENCES LIE?
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 31
WHAT DO HIGH-GROWTH MEN ENTREPRENEURS
THINK ABOUT THEM?
“The difference between men and women is that men are more willing to take risks.”
“For women it is difficult to find a work-life balance, especially when they have children.”
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 32
Despite the increase in the number of
businesses led by women in the last few
years, high-growth men entrepreneurs still
perceive that women entrepreneurs have to
overcome more barriers than they do to be
successful. While men acknowledge that all
entrepreneurs, regardless of their sex, face
obstacles linked to the business environment,
they recognize that women face a series of
challenges linked to women’s traditional roles
in society and family life.
In addition to the challenges faced by women
in looking after their families and children,
men also say women have to overcome their
lack of self-confidence and their aversion to
risk in creating, running and expanding their
businesses. When asked, 25% of men say that
women entrepreneurs are not fully convinced
that they will be successful when they start
up their businesses.
In spite of their opinions regarding the
challenges faced by women entrepreneurs,
90% of men believe that women are as
capable as they are to create businesses.
Challenges faced by women entrepreneurs according to men
(% of responses)
Which do you believe are the five main reasons in your country keeping women entrepreneurs
from becoming high-growth entrepreneurs?
* Maintaining a work-life balance, conflict among the several roles performed by a woman, and activities related to their
household and childcare responsibilities.
23%
21%
18%
10%
7%
7%
7%
7%
Traditional role of women* Risk aversion and insecurity
Business environment Discrimination and lack of acceptance
Lack of financing Poor perception of entrepreneurship
Lack of family support Business skills
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 33
WHAT ADVICE WOULD YOU GIVE TO WOMEN ENTREPRENEURS WHO WANT TO GROW THEIR BUSINESSES?
PROVIDED BY HIGH-GROWTH WOMEN AND MEN ENTREPRENEURS
1. BE MORE CONFIDENT “Be confident. This will allow you to fight and show the potential that you still do not know you have.”
Woman Entrepreneur – Mexico
“Be self-confident, this will give you perseverance, a lot of potential and a lot of energy to move forward in difficult times.”
Woman Entrepreneur – Mexico
“Be confident, enthusiastic and believe in what you are doing. If you believe in yourself, things will work out. If you believe in your business, think beyond the horizon you are facing.”
Woman Entrepreneur – Peru
“Be confident even if you do not know how to implement your idea. It is important to go slowly.”
Woman Entrepreneur – Colombia
2. LOOK FOR TRAINING AND SUPPORT “Look for training and adequate funding to bring your idea forward.”
Woman Entrepreneur – Colombia
“Rely on mentors and keep training to identify your needs.”
Woman Entrepreneur – Mexico
3. GO AHEAD, IT IS YOUR IDEA AND YOUR COMPANY “Talk about your idea. People think that if they talk about their idea, someone is going to steal it, but only an entrepreneur can transform an idea into a company.”
Woman Entrepreneur – Argentina
“Do not allow someone to tell you “NO,” since you know your business better than anyone else. You should have confidence and believe in what you are doing.”
Woman Entrepreneur – Colombia
“Understand your competitive advantage; we have the ability to take on any challenge.”
Woman Entrepreneur – Colombia
1. LISTEN TO YOURSELF
“Do not always listen to others, listen to yourself instead.”
Woman Entrepreneur – Chile
2. PAY YOURSELF FOR YOUR
WORK
“If you are a woman entrepreneur, pay yourself a salary, just as if you were any other employee.”
Woman Entrepreneur – Colombia
3. RELY ON OTHERS
“If you want to go fast… do it alone, if you want to go far… you have to be accompanied.”
Woman Entrepreneur –Argentina
1. HAVE CONFIDENCE AND DO
NOT BE AFRAID TO FAIL
“Women entrepreneurs are aggressive and assertive, but I think that it takes them a little more time to fulfil their objectives because they are too analytical. To be successful you must be confident, take risks, and not be afraid to fail."
Man Entrepreneur – Jamaica
“Develop confidence in ignoring the stereotypes associated with women.”
Man Entrepreneur – Costa Rica
2. TAKE RISKS
“The difference between men and women is that men are more willing to take risks. Also, women and men measure success differently.”
Man Entrepreneur – Argentina
What do women entrepreneurs say is
the best advice they received?
What advice do men entrepreneurs
offer to women?
What advice should women entrepreneurs give to other
women who want to start businesses?
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 34
CONCLUSIONS AND RECOMMENDATIONS
Strengthen the entrepreneurial ecosystem for women through:
Access to finance
Contact networks
Support and learning
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 35
The main challenge faced by entrepreneurs in
the region is the lack of access to financing
and capital.
More than 50% of women entrepreneurs
have funded their company with personal
resources together with funding from family
and friends. In most cases, as their companies
start to grow, they look for other financing
options, such as bank loans. On the other
hand, men entrepreneurs tend to access
more diverse sources of funding and equity
funding, such as angel investors, and seed
capital and venture capital funds.
With greater knowledge and access to
different types of funding, women
entrepreneurs could avail themselves of a
more diverse mix of capital to expand their
operations, enter new markets, integrate
new technologies, and hire key talent to help
them improve their companies’ operations
and strategy, among other benefits.
Following are some recommendations on
how to increase access to finance for women
entrepreneurs:
1. THEY WANT SOMETHING MORE THAN JUST
FINANCING
The process of securing sources of financing,
including external equity, implies that the
business plan be thoroughly analyzed. The
feedback arising from potential investors can
provide valuable suggestions to women
entrepreneurs around how to grow their
business more effectively.
Women entrepreneurs should look for smart
capital, which also provides mentorship and
guidance that could increase their ventures’
probability of success.
2. ENCOURAGE THEM TO SEEK NON-TRADITIONAL
FINANCING
The different players of the entrepreneurial
ecosystem should focus on increasing funding
instruments and distribution channels to
encourage and increase entrepreneurial
activity in the region. Thus, it is necessary to
evaluate the design of low-risk financing
instruments, and to design strategies to
increase public and private sector investment
in order to accelerate growth in new
ventures.
3. INFORM WOMEN ABOUT DIFFERENT FINANCING
RESOURCES
To grow their businesses to the next level,
high-growth men entrepreneurs tend to rely
more on their mentors, private investors and
entrepreneurial networks, while women tend
to rely less on these. Thus, it is necessary to
encourage women entrepreneurs to diversify
their funding sources as well as to identify
when they need to raise this capital.
Accelerators and incubators play an
important role in attracting more women
entrepreneurs, as these organizations could
increase the entrepreneurs’ mentoring and
networking resources.
Access to finance
A common challenge
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 36
The three types of entrepreneurs analyzed
believe that having an effective network
group is one of the main factors that
contribute to the success of an entrepreneur.
However, women entrepreneurs from both
groups reveal that they have limited or
ineffective networks, which represents one of
the challenges most often mentioned.
Due to the different roles that women hold,
they tend to have limited time and locations
for networking and establishing new
contacts; the time during which they are not
working, they spend with their families, their
partners, and taking care of their home.
Consequently, it is important to use players in
the entrepreneurial ecosystem such as
investors, universities, the labor market and
the media, as platforms for exposure and as
links to the business environment. Following
are some recommendations on how to
increase their networking skills:
1. MAKE EDUCATION MORE FLEXIBLE AND OFFER
INTERNATIONAL EXPERIENCE
For women entrepreneurs, being exposed to
more enriching academic environments and
international experiences could make a
difference in the rate of growth in their
businesses, their ability to create connections
and generate a wider contact network, and
their ambitions for what they would like to
achieve within their businesses. Therefore,
developing more flexible higher education
programs (bachelor’s, master’s and doctorate
degrees) is recommended, so that
women entrepreneurs can update their
knowledge and increase their experiences.
2. MAXIMIZE THE POTENTIAL OF THEIR CONTACT
NETWORKS
Women entrepreneurs need to focus on
networks that will aid their businesses’
growth. They should have a clear
understanding of their current relationships,
and the relationships they wish to have, and
they need to be selective in their efforts to
expand their networks. This begins with an
honest inventory of their skills and the needs
of the company, followed by a deliberate
effort to connect to the right key people.
Such a network of contacts will allow them to
easily be able to contact key people who will
help them find new opportunities and ideas
or different perspectives in order to lead their
business to the next level; create close
professional circles that will supplement their
knowledge with topics that are relevant to
the successful operation and management of
their businesses; and build circles of trust in
which they will acquire advice, guidance and
objective feedback.
Furthermore, as businesses grow and
consolidate, women entrepreneurs may
choose to formalize their contact networks by
establishing a Board of Directors or Advisory
Board, which allow them to acquire guidance
and coaching over time, in addition to getting
feedback that could be applied when growing
their businesses. Similarly, contact networks
can foster synergies through the exchange of
Contact network
Being an entrepreneur is not a lonely job
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 37
management skills and best practices within
specific industries.
3. CREATE INTERNATIONAL NETWORKS
Nearly ninety percent of women
entrepreneurs in the study indicated that
they would do anything within their reach in
order to maximize the potential of their
businesses, and given the fact that exposure
abroad often leads to valuable new
relationships. To do so, women should
consider: (i) associating themselves with
organizations that have global reach and
presence, and reaching out to commercial
and sectorial chambers; (ii) participating in
public or private trade missions with other
countries; (iii) establishing contacts with
possible buyers or commercial partners
outside of their domestic market in order to
explore the possibility of collaboration, (iv)
attending business entrepreneurship events
in other countries; (v) maintaining ongoing
contact with business accelerators and other
organizations which support entrepreneurial
activities.
4. ESTABLISH A HIGH PERFORMANCE TEAM
Based on the interviews done with women
entrepreneurs, one observes that they have
difficulty delegating their companies’ daily
activities to others, which leads to their not
being able to focus as much on the strategic
end of their businesses. Women
entrepreneurs should create teams that
enable them to delegate the operation and
supervision of daily tasks.
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 38
Given the vast economic potential that
women entrepreneurs represent in the
region, it is important that governments and
society take part in creating supportive
resources that will promote women’s
entrepreneurship and establishment in the
business sphere. Following are some
recommendations on how to improve the
entrepreneurial environment:
1. IMPROVE CHILDCARE PROGRAMS
According to the survey data, 80% of the
women entrepreneurs interviewed have
children. The balance between family and
professional life is their main challenge when
trying to expand their companies. They have
expressed that having higher quality childcare
will allow them to concentrate on other
activities, whether professional or personal.
In general, the high-growth male
entrepreneurs are younger than the high-
growth women entrepreneurs (60% of the
women entrepreneurs are over 40 vs. 40 % of
high-growth male entrepreneurs). This
reflects the effect of low quality childcare,
which could cause delay in activity for
younger women entrepreneurs.
Governments and the private sector should
create programs that promote childcare,
including specialized daycare centers (e.g.,
those that can attend to sick children, or
provide support in other emergencies) and
possibly even daycare co-located with
business incubator or accelerator facilities in
order to increase the number of younger
women entrepreneurs.
2. CELEBRATE SUCCESS STORIES
Celebrating and recognizing the
accomplishment of women entrepreneurs
can help to build positive perceptions of their
role in the business sphere. Furthermore,
these successful women could become role
models for others to follow. In promoting
their achievements and how they have
overcome their obstacles, they may provide
other women entrepreneurs with inspiration
and information to help them carry their
businesses forward.
Government, entrepreneurship support
organizations, the private sector, and the
media play crucial roles in promoting
examples of successful women
entrepreneurs. It is important they provide
opportunities to share them at national and
regional levels.
Support and learning Improving the entrepreneurial environment
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 39
COMPARISONS BETWEEN GROUPS
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 40
WHERE DO THE DIFFERENCES LIE?
High-growth women
entrepreneurs
High-growth men
entrepreneurs
Low-growth women
entrepreneurs
Age Prevailing response
30 – 39 32%
30 – 39 40%
40 – 49 35%
Marital status Prevailing response
Married or partnered
63%
Married or partnered
72%
Married or partnered
59%
Has children
78%
67%
69%
Holds a bachelor’s degree
76%
90%
85%
Has studied abroad
35%
60%
32%
Has parents with a bachelor’s degree
48%
70%
51%
Come from entrepreneurial
family
75%
76%
66%
Prevailing MIH26
High and medium-high 72%
High and medium-high 96%
High and medium-high 73%
Note: Fields shaded in yellow denote significant differences with the other groups studied.
26
MIH: Monthly income per household ranges were derived from household surveys income data obtained in each country’s national statistics office.
Who are they?
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 41
WHERE DO THE DIFFERENCES LIE?
High-growth women
entrepreneurs
High-growth men
entrepreneurs
Low-growth women
entrepreneurs
Main sector where he/she started
his/her business
Food and beverages Business services Manufacturing
Software Internet Business services
Food and beverages
Business services Retail
Reason for starting a business in that
sectors
Market opportunity
Technical expertise/
knowledge
Market opportunity
Technical expertise/
knowledge
Technical expertise/
knowledge
Market opportunity
International reach
40% 71% 27%
Main ambition when he/she
started his/her business
Medium or large domestic company
Multi-million dollar company with
international reach
Medium or large domestic company within their country
Is the principal owner (majority
shareholder)
73% 35% 68%
Principal partner (or co-owner)
Family Spouse or partner
Friends/family Colleagues Other entrepreneurs
Family Spouse or partner
Has a mentor
56% 64% 50%
Current business is his/her first
business
66% 40% 84%
Has considered closing the
business
26% 24% 26%
Note: Fields shaded in yellow denote significant differences with the other group studied.
What defines their
entrepreneurial activities?
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 42
WHERE DO THE DIFFERENCES LIE?
High-growth women
entrepreneurs
High-growth men
entrepreneurs
Low-growth women
entrepreneurs
Main sources of support
When starting their businesses
56% Family Spouse Friends
53% Family Friends Spouse
63% Family Spouse Friends
In growing their businesses
37% Family Spouse Friends
31%
Family Entrepreneurship
associations Spouse
41% Spouse Family Private banks
Main sources of financing
When starting their businesses
88%
Personal savings/ family/friends
Private banks Other partners
79%
Personal savings/ family/friends
Other partners Government
95% Personal savings/
family/friends Private banks
In growing their businesses
82%
Personal savings/ family/friends
Private banks Government
74%
Personal savings Private banks Venture capital Other partners
84%
Personal savings/ family/friends
Private banks Other partners
Main motivation
When starting their businesses
1. Passion for own business
2. Economic independence
3. Personal challenge
1. Passion for own business
2. Personal challenge 3. Economic
independence
1. Economic independence
2. Passion for own business
3. Personal challenge
In growing their businesses
1. Economic independence
2. Passion for own business
3. Doing something worthwhile
1. Personal challenge 2. Passion for own
business 3. Earning more
money
1. Doing something worthwhile
2. Passion for own business
3. Economic independence
Who supports them and what
motivates them?
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 43
WHERE DO THE DIFFERENCES LIE?
High-growth women
entrepreneurs
High-growth
men
entrepreneurs
Low-growth women
entrepreneurs
Agrees with the following statement: “What I have achieved
with my business exceeds my initial expectations.”
65%
68%
45%
Agrees with the following statement: “What I have
achieved with my business is enough for me.”
22%
21%
19%
Agrees with the following statement: “I want to keep on
growing my business.” 85%
83%
84%
Agrees that with the opportunity and the resources: “I would do
whatever I had to do to take my business to its full potential.”
88%
90%
91%
Note: Fields shaded in yellow denote significant differences with the other groups studied.
What are their goals and
aspirations?
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 44
WHERE DO THE DIFFERENCES LIE?
Main personal challenges they faced when starting their businesses and currently have in
growing their business
What personal challenges do they face?
1. Fear of failure 2. Household/childcare
responsibilities 3. Lack of confidence or
motivation/poor self-image
High-growth women
entrepreneurs
High-growth men
entrepreneurs
Low-growth
women entrepreneurs
1. Maintaining work/life balance
2. Limited or ineffective networks
3. Lack of managerial knowledge
1. Fear of failure
2. Lack of confidence or
motivation/poor self-image
3. Household/childcare
responsibilities
1. Maintaining work/life balance
2. Conflict among the various roles performed by a woman
3. Lack of commercial or negotiation skills
1. Normal business risks
2. Maintaining work/life
balance
3. Limited or ineffective
networks
1. Maintaining work/life balance
2. Lack of commercial or negotiation skills
3. Limited or ineffective networks
When starting their businesses
In growing their businesses
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 45
WHERE DO THE DIFFERENCES LIE?
Main social and cultural challenges they faced when starting their businesses and currently have
in growing their business
What social and cultural challenges do they face?
1. Did not face any challenges 2. Sex discrimination 3. Poor perception of
entrepreneurship in society and the media
High-growth women
entrepreneurs
High-growth men
entrepreneurs
Low-growth women
entrepreneurs
1. Did not face any challenges 2. Poor perception of
entrepreneurship in society and the media
3. Social/family pressure
1. Did not face any challenges 2. Poor perception of
entrepreneurship in society and the media
3. Sex discrimination
1. Did not face any challenges 2. Conflicts with cultural
values 3. Poor perception of
entrepreneurship in society and the media
1. Did not face any challenges 2. Conflicts with cultural
values 3. Poor perception of
entrepreneurship in society and the media
1. Did not face any challenges 2. Poor perception of
entrepreneurship in society and the media
3. Conflicts with cultural values
In starting their businesses
To growing their business
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 46
WHERE DO THE DIFFERENCES LIE?
Main business-related challenges they faced when starting their businesses and currently have
in growing their businesses
What business-related challenges do they face?
1. Lack of access to funding 2. Strong competition in the
sector 3. Lack of good coordinated
support
1. Lack of access to funding 2. Quality of the available
workforce 3. Complex regulatory
environment
1. Lack of access to funding 2. Strong competition in the
sector 3. Lack of good coordinated
support
In starting their businesses
1. Lack of access to funding 2. Strong competition in the
sector 3. Quality of the available
workforce
In growing their businesses
1. Quality of available workforce
2. Lack of access to funding 3. Complex regulatory
environment
1. Lack of access to funding 2. Lack of good coordinated
support 3. Quality of the available
workforce
High-growth women
entrepreneurs
High-growth men
entrepreneurs
Low-growth women
entrepreneurs
WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 47
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WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 49
CONSULTED ORGANIZATIONS
We appreciate the cooperation of the following organizations:
Agencia Nacional de Investigación e Innovación (Uruguay), Angel Ventures Mexico, Ellas2,
Endeavour International Corporation, Entrepreneurs’ Organization, Entrepreneur of the Year- Ernst
& Young, Instituto Nacional del Emprendedor (México), Lima Valley (Perú), Ministerio de la
Innovación de Costa Rica, Mujer Emprende (México), Mujeres Batalla (Perú), Start-up Chile, NXTP
Labs, Universidad del Pacífico (Perú), Yo Emprendedor (Costa Rica), Young Entrepreneurs
Academy, Wayra, WEConnect International, WeXchange, Women@TheFrontier.
Multilateral Investment FundMember of the IDB Group
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